Example \#2 Use the Accounting equation to record the following transactions then create the 4 Financial Statements (Income statement, Statement of Retained Earnings, Balance sheet, \& Cash Flow). \{in total 5 tables\} The Accounting Equation - A Practical Example To better understand the accounting equation, consider the following example. Mike Peddler decides to open a bicycle repair shop. To get started he rents some business. Here is a listing of the transactions that occurred during the first month